Thailand: Oil Bills Up 140% Over Same Month Last Year

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Last month's oil bill totals US$800m

THE country's oil bill last month increased a spectacular 140 per cent compared with August of last year - from US$331 million (Bt13.96 billion) to $800 million.

The dramatic increase substantially reduced the trade surplus, the Bank of Thailand (BOT) said.

But the export sector continued to gain strength, surging 24.9 per cent to $6.07 billion last month.

The sharp increase in the cost of oil imports brought August's total import figure to $5.8 billion, or a year-on-year increase of 41.2 per cent.

The BOT said the overall trade surplus was $262 million in August, while the current account surplus was $556 million.

"The increase in oil-import prices has also affected private domestic consumption," BOT chief economist Achana Waikhuamdee said.

"In August private domestic consumption expanded a slight 1.2 per cent year-on-year."

Most months the figure was much higher. Despite the sharp surge in imports, the central bank remains confident that the country this year will register a trade and current account surplus, a key to macroeconomic stability.

A weakening baht and higher oil prices have hit the country hard. Since the beginning of the year, the baht has fallen about 15 per cent against the US dollar, yesterday trading at about 42.18 against the greenback. According to the central bank, oil imports in the first eight months of the year reached $4.3 billion, compared with $2.3 billion during the same period last year.

During the past three months, oil imports averaged $700 million a month, compared with $300 to $500 million a month during the same period last year, the BOT said.

"If oil imports should average $700 million a month over the remaining four months of the year, the total oil-import bills for the whole year will reach $7 billion, compared with $4.3 billion in 1999," Achana said.

Higher oil prices have also undermined consumer confidence, with car sales in August increasing a slight 1.2 per cent year-on-year. In the first half of the year, vehicle sales grew about 70 per cent. Achana said the continued recovery of domestic consumption remained uncertain. Imports of consumer goods in August increased 12.9 per cent, compared with about 30 per cent in previous months.

BY ANOMA SRISUKKASEM

The Nation

http://www.nationmultimedia.com/new/bu1.shtml

-- Carl Jenkins (Somewherepress@aol.com), October 01, 2000


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